How can I reduce threshold billing fees?

[Esmè89]

Can someone please explain what threshold billing are to me in the simplest way possible?

Are these transaction fees? Where are these coming from? 

Is it possible to lessen these threshold fees? If so, how?

Thank you!

[Greta · Accepted solution]

Hi there, @Esmè89!

Thanks for your post, I'm happy to share some more information on how our billing works. 

The simplest way to think of threshold billing is that there is a maximum amount associated with your account, and once the pending charges on your account reaches that amount, you are charged right away, rather than only being charged on your bill date. You aren't charged any additional fees by reaching your threshold limit. 

For a bit more detail and context — Shopify has implemented a threshold billing system to collect pending payables on accounts when they reach their billing threshold limit. Pending payables can consist of app charges, shipping labels and transaction fees. The ''Rolling maximum threshold" is the dollar amount that when, if at any point of time, a merchant has surpassed the total amount - we will automatically issue an invoice within the hour for all of the pending payables. You can find your threshold amount by logging into your Shopify admin and navigating to Settings > Billing > Bills. To learn more about billing thresholds, you can check out our help document here.

If you would like to increase or decrease your threshold amount, you can get in touch with our live support team and apply (please note this is only possible if your store is eligible for an increase/decrease). We're available 24/7 through the Help Center!

Please let me know if you have any other questions. 

[anneagle]

How do you find out how much your maximum amount associated with your account for the fee to be applied?

[Greta]

Hi, @anneagle!

Thanks for reaching out. If you have any third-party transaction fees or other charges during your current billing cycle, then your store's threshold appears in the Bills section of your Shopify admin (which you can find by navigating to Settings > Billing). If you have no transaction fees or charges, then your store's threshold doesn't appear. You can check out this help document for more information!

Please let me know if you have any other questions.